OSTİM is actually one of the places where SMEs are concentrated and where the pulse of industry beats in Turkey. How are things going? We are seeing a recovery in PMIs. In real terms, how are things in OSTİM? Is a slight recovery being felt?
"We are frequently asked, 'How are things going in OSTİM?' The only data point we have to answer this is our electricity consumption. Since we also operate the electricity business, we have a dataset that we've been monitoring for the region every month, and historically for almost 10 years. When asked 'How are things?', we immediately look at OSTİM's electricity consumption graph. When we compare this month's graph with previous years, we don't see a decline in our business. OSTİM is a region heavily focused on defense and aerospace, and construction machinery. Therefore, I believe these sectors are feeding us. There is no noticeable decrease in production in our region. Our industrialists are complaining more about access to finance and finding employees while producing more. Apart from that, production continues."
You made a significant move in Uzbekistan. In a sense, you exported the OSTİM model to Uzbekistan. A significant collaboration led to the establishment of the Uzbek-Turkish Organized Industrial Zone there. Could you tell us a little about this? What kind of structure is it? What are the goals?
As you know, our region is not just an organized industrial zone. We envision it as an ecosystem for small and medium-sized enterprises and industry. All components are integrated here; from the technopark to the university, a complete end-to-end ecosystem has been created. We have many foreign visitors. Therefore, when we explain what is being done in OSTİM, they are very interested. Then the question arises, "Can we do this in our country as well?" A wealth of experience has accumulated here over 50 years. When we say that we can transfer this to other countries, high-ranking officials from those countries—the president, prime minister, and ministers of industry—encourage us to bring this accumulated experience to their own countries.
The Uzbek side was very impressed with our work; they said, "Let's establish a joint Turkish industrial zone in Tashkent." They expressed their desire to replicate the work done at OSTİM in Tashkent and Uzbekistan. Uzbekistan is very important to us. It's a place that interests us in three areas: history, culture, and business. It's a place where the sources of our civilization and enlightenment are located. We went to Uzbekistan with the intention of creating a continuous and sustainable cooperation environment there, including the economy. The Uzbek Ministry of Industry, the Ministry of Investment, and the Prime Minister of Uzbekistan attach great importance to this. They allocated us a 100-hectare area under the name OSTİM. We carried out the planning and designs with serious work. Most recently, we went to Uzbekistan with a business delegation of 42 people from Turkey. We saw the construction of the first buildings related to the infrastructure of this industrial zone, including the administration building, training buildings, and the technopark, and we cut the ribbon. We examined the entire area and its projects. We showed the area to our industrialists; “We told them, ‘If you want to invest here, these are the opportunities we have prepared for you.’ We returned from Uzbekistan with great excitement. We have employees and a company there. We have a team that runs our operations. We constantly go back and forth to monitor the situation there.”
Could the Uzbek-Turkish Organized Industrial Zone also contribute to a more balanced trade between the two countries?
It will definitely yield results. We envision this place as a focal point for both Turkish and Uzbek businesspeople, as well as for the development of trade between Turkey and Uzbekistan. It can also serve as a destination for those wishing to travel there. For industrialists, it could offer investment opportunities in a new model industrial zone. Organized industrial zones provide a well-prepared and organized industrial infrastructure for industrialists. We are planning this region as a center that will facilitate the increase of trade, production, and cooperation between Turkey and Uzbekistan.
Could OSTİM Technical University develop collaborations with Uzbekistan? Could an attempt be made to establish a university there? Is such a matter being planned?
We are considering it. TOBB ETÜ has a project. We are also thinking of initiating this from time to time in cooperation with universities in Uzbekistan. We have students from 87 countries at OSTİM Technical University. 40 of them are from Uzbekistan. We are paying attention to their education and their contributions to the work we will do there. At the same time, we plan to carry out all the work we do in OSTİM, including university, technopark and clustering, as one main theme there.
What are your expectations for the minimum wage increase?
The minimum wage comes up on our agenda every year. Of course, the focus here needs to be on work and production. People are, of course, important. Unfortunately, as everyone knows, there's an informal economy and a large group of workers in our country. This is because there's a tax and withholding tax imposition on wage determination. I believe there should be some differences and privileges for those involved in industrial production. Those in production often complain about not being able to find workers. We need to identify the reasons for this very well. There are many reasons, but one that comes to mind is the taxes and withholding taxes levied on the minimum wage.
Then people think, "Why should I work in the manufacturing sector? I'll just go and be a security guard in a shopping mall." However, I think we should put in place a motivational tool that encourages people to become producers in industry instead of security guards in shopping malls, considering minimum wage, taxes, and withholding taxes. Labor is very valuable, very sacred. We must reward people who work and produce. Not just those working for minimum wage, but workers, employers, and all other employees together; I believe that people who create added value, who work with their intellect and sweat, should be generously rewarded in terms of wages.
What will be on your agenda for 2025? In economic terms, and in terms of production, do you expect a better 2025? Are you optimistic?
Our industrialists, especially small businesses, have become somewhat accustomed to these kinds of ups and downs. Flexibility is particularly important for small businesses. We have clusters under seven different headings. These clusters meticulously plan in advance which country, which sector, which trade fair, and which collaboration they will visit, carrying their briefcases across regions and countries. We have serious goals for 2025. We travel the world for export purposes. We identify which countries have opportunities and where we have potential through competitive analysis.
Our Ministry of Trade provides very significant support. Within the scope of the International Competitiveness Development Support (UR-GE) projects, we are working intensively to sell our products and develop the areas in which we produce. I appreciate SMEs as an important structure of our country. I am pleased to serve them. Currently, people are continuing to struggle to produce and sell their products to the world despite all the circumstances. Hopefully, 2025 will be better than 2024. We must do our work with hope. We believe that our country will reach better levels, and we work with this belief.
Are you satisfied with the performance of OSTİM Yatırım A.Ş.?
Our company is doing great things in terms of supporting production in our region and collaborating with SMEs. OSTİM Yatırım A.Ş. is making significant efforts, particularly in areas like digital transformation and green transformation, to guide our region. OSTİM Yatırım A.Ş. is a crucial part of our ecosystem. Small businesses here can, if they wish, gain the potential and capabilities of large businesses through collaborations and project partnerships with OSTİM Yatırım A.Ş. OSTİM Yatırım A.Ş. has established a Venture Capital Investment Fund, which we operate jointly with a bank. By investing in technology companies, it acts as a mentor to companies that develop technology and produce high value-added products. This is very important to us, and we want to further develop it. We participate in all innovative organizations in our region.
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